After 8-year wait, AI employees allowed to move into quarters

The Bombay high court on Tuesday quashed a condition imposed by City and Industrial Development Corporation (CIDCO) that prevented several Air India employees from taking possession of flats. purchased by them from their employer.

The Bombay high court on Tuesday quashed a condition imposed by City and Industrial Development Corporation (CIDCO) that prevented several Air India employees from taking possession of flats. purchased by them from their employer.

HT Image

A division bench of justice DY Chandrachud and justice RD Dhanuka rejected the condition that required the employees to present domicile certificate – stating they have been residing in Maharashtra for at least last 15 years – saying it was contrary to existing laws.

In 1992, CIDCO had allotted a plot measuring 1.24 lakh square metres to Air India (AI) to construct staff quarters. AI later decided to allot the flats to their permanent and full-time employees on an ownership basis.

On Tuesday, the court also took into consideration the inordinate delay in implementation of the whole scheme.

Although the flats were allotted eight years ago, none of the beneficiaries could get possession of the flats as CIDCO alleged that AI had breached conditions in the lease agreement, under which the airline was required to complete the construction within a stipulated period.

However, the two parties arrived at a consensus in 2010 and the issue was closed after AI paid the corporation an additional premium of Rs17,500 per square meter for the piece of land on which they had built 25 buildings in 2004. In 2011, CIDCO imposed some more conditions, one of which required the beneficiaries to present domicile certificates.

The bench, presided by justice Chandrachud, however, noted that throughout the litigation, CIDCO had never stated that the employees would be required to comply with rules provided in the New Bombay Disposal of Lands, 2008, one of which required the beneficiaries to present domicile certificates.

The court has now directed CIDCO to issue a no objection certificate within four weeks, which will allow the employees to take possession of the flats.